
Rumours this week have led to claims Xbox could completely exit the hardware side of the video game business, and naturally, it's raised concerns amongst fans. It was believed employees of Microsoft's gaming division might have also been left in the dark at one point, but it seems not based on the latest update.
According to journalist Shannon Liao, Xbox's team held an "internal Tuesday townhall" where Microsoft's Gaming CEO Phil Spencer informed employees there are "no plans" to abandon consoles. Hardware and Xbox will apparently remain "part of a strategy" with "multiple kinds of devices" going forward, according to Liao. Here's exactly what she had to say:
"The company held an internal Tuesday townhall where Spencer told employees that there were no plans to stop making consoles, and that Xboxes would continue to be part of a strategy that involves multiple kinds of devices. Xbox did not immediately return a request for comment."
This potentially connects to some rumours earlier this month, when Windows Central's Jez Corden claimed Xbox had supposedly "greenlit several new hardware projects" in recent weeks. He also believes one device, in particular, is a handheld console. However, no other details have been shared.
Whatever the plans are going forward, all will (hopefully) be revealed next week when Phil Spencer and Microsoft share a business update on the future of Xbox. Earlier today, Insider Gaming's Tom Henderson suggested Xbox employees were "very surprised" about the extent of the latest rumours, and believes nothing is "set in stone" apart from a few games going to other platforms.
Could you see Xbox exiting the console market at any point in the future? What do you want to hear at the business update event next week? Leave a comment below.
[source shannonliao.substack.com]
Comments 72
Exactly as I have been saying for days...
With all the rumors swirling, some of which were and still are dubious, I guess he kind of has to do that. In any case, we'll find out their plans soon enough.
This is good news. I do believe there to be a streaming stick in development, as well as a handheld device, and I do believe there will be the big box premium product that we all know as the traditional console on the market for the long term as well. Consoles will always be a PIECE of the puzzle, while mobile phones and PC will become a major focus. I do believe that many games will be ported over to other hardware such as the PS5 and Switch, but that doesn't bother me at all as that will help make Microsoft's gaming brand more money long-term. This is a business, after all.
We do need to understand that Xbox isn't just a console and if they don't think beyond the console than they're never going to truly grow. Make the plastic box a PIECE of the pie, but not the ENTIRE pie.
I'm pretty sure Sega wasn't planning on not the Dreamcast being the end of their consoles either.
I never doubted MS would want to make more consoles, my fear is releasing too much "exclusive" content on rival platforms will cause sales to nose dive to the point that it won't make fiscal sense to make consoles, which in turn dooms our digital libraries.
@GamingSince84 Yeah, there will be an Xbox console as long as there are consoles because it makes perfect sense, but I can see a handheld device and a streaming device/plug-in as well. Xbox more than can afford to make Xbox consoles when they make new high-end Surface devices every year, when they have the most successful premium subscription, when they have billions invested in the gaming division, that it's not just consoles, and when they aren't Sega in the noughties but a trillion-dollar company in a digital globalised world where consoles still are an easy and good-value platform for dedicated gamers.
Not surprising at all. The rumors were way off base this week. I'm sure it had a lot to do with playstation users fueling the fire but it was shocking to see so many xbox users jump immediately to "its over."
Even the news of Hi Fi and SoT is not really out of line with previous behavior. Minecraft spinoff, quake remaster, ori, cuphead, etc going to other systems didn't set off alarm bells.
That never made sense. I am almost certain their business update will basically be doubling down on their commitment to Xbox, Day 1 Game Pass etc. but making some games multiplatform probably after a delay. Most likely ABK and Bethesda studios that were already multi-platform, while keeping most, but not all, Xbox Game Studios exclusive. (live services / online mostly)
@abe_hikura they have so much more ip than ever before, more major ip than any gaming company really. If they survived when it was basically gears, halo, forza then I think they can survive with a wide range of exclusives and multiplat games.
@BacklogBrad Right. Microsoft has been publishing games on other consoles and PC for a while and some games going multiplatform is the only bit that is backed up by more reliable sources. Everything else has either been made up by random people hungry for internet pseudo-fame and clicks or Xbox haters.
@abe_hikura SEGA were losing money hand over fist and risked going bankrupt it isn’t the same position for Microsoft.
In fact the only thing that saved SEGA was their president giving all his stock to the company (over $650 million)
@abe_hikura that’s a fair and valid point to fear putting too much exclusives on competing platforms. I personally don’t think it’s going to be as much as the rumors are saying. My guess is it’ll be a few older titles along with a couple newer AA games sprinkled in here and there. I believe the bigger games and flagship titles will remain Xbox exclusive. We’ll just have to see what they say next week. It’ll be here before we know it.
@abe_hikura This. There has to be a reason to buy a console and that is exactly what exclusives do. Take away the exclusives and you have no reason to really even get one.
Remember this....
Microsoft doesn't have to sell the most consoles to be #1, they just need to make the most money. They made over $7B in gaming in the last quarter alone, and they're going to continue to make money off of their ABK acquisition and off of services such as Game Pass.
Selling plastic boxes is just a small piece of a much larger pie. Microsoft is in an amazing position right now to be #1 and last quarter was the genesis of it.
@EvilSilentFrame Yeah I'm not expecting it to be that bad, I don't expect MS to announce all their games coming to PS/Switch, and I'm not expecting 90% of Acti-Bliz games to be exclusive anyway but I do worry that enough MS/Bethesda games "jumping ship" would be the next twist in a death spiral.
I fully support stuff like SoT or Hi-Fi Rush going multiplatform. I can't imagine SoT has much more earning potential on Xbox/PC and as much as I love Hi-Fi Rush, it wasn't going to sell systems.
If the likes of Bethesda had already completed 70-80% of a PlayStation version of titles like Hi-Fi Rush and Starfield then it makes perfect business sense to have been working on finishing those games and releasing them a year later.
I don't like the idea of games like Indy making the jump but again if they have most of the game running on PS then I could forgive it.
I don't think any MS gaming division titles (Gears - Halo etc.) should be made multi platform because that is just removing dev time for Xbox (and PC) games.
As for multiplayer and GaaS games then the more platforms the better as a bigger audience means more money returning to the xbox division, which can only be a good thing.
@Banjo- Yeah been a load of drama over nothing. Can't help but think it could have been avoided if MS had shut it down from the get go rather than wait for a business update next week. Let it fester a bit too long.
@abe_hikura when I first heard the rumors a few weeks ago of SoT and Hi-Fi Rush going multi plat, I was thinking “why?” But the more I thought of it, the more sense it made. Something like Microsoft Flight Simulator also makes sense as those games are not going to push more consoles, they did what they could on Xbox, and now can have a bit more success on another platform.
As for ABK and Bethesda games, I do think some will remain exclusive to Xbox. I don’t think they would spend billions to acquire both companies and then just release all the games on competing consoles. I think when it comes to Xbox, so many people jump on the rumors to declare victory for their console of choice. I think a few games from them will go multi plat and the rest will stay exclusive.
I mean it was never going to happen yet.
But it’s kinda funny watching everyone as all the other rumours were false, but this one is true.
No plans for it now, but if they put all their exclusives on PlayStation and console sales tank even more then those plans will change when everyone stops making games for Xbox.
@Jaxx420 But then why are we all okay with Nintendo and Sony not denying nor confirming rumours? Not just until one week later, but outright they don't answer them.
Yes, they shall continue to produce consoles as long as it is cost effective for them to do so. Hopefully we shall get some clarification regarding software exclusivity next week. One thing’s for sure, hardware sales will not increase with fewer exclusive titles. Hopefully the loss in sales will be marginal and Xbox won’t lose further ground to PlayStation.
Gamepass is great but it’s already resulted in fewer games being purchased on Xbox, which has caused several indie developers to reevaluate whether or not they release a title on Microsoft’s consoles. Install base is also having an impact on indie titles, with those that don’t come to gamepass opting to release on switch and PlayStation rather than the smaller Xbox market.
I don’t fear for first party support on Xbox - I fear for third party titles, particularly indie and Japanese software if Microsoft continue to lose ground to PlayStation.
@Banjo- I think the closest to the current Xbox situation is with Nintendo back in 2015 when they announced NX early to alleviate fears about them ditching consoles as a result of plans to enter the mobile space.
Give me an Xbox 360 handheld (that could hopefully also play my discs).
@Banjo- Same applies personally all as bad as each other. But this one created so much buzz if it's not what is circulating best thing would be to come out and shut any nonsense down.
They may still be deciding and finalising their move is probably the issue. But in a social media age the drama circulates so much quicker now.
It's also similar with Sony's lack of comms on first party and Nintendo not being forthcoming about future hardware plans. The biggest difference here is how much drama it has created in such a short space of time.
Agree with your original point there though. The issue isn't restricted to MS and shouldn't be.
@Grumblevolcano That is an exception made by Nintendo, but in this case is relevant, because we're talking about the same situation, although Nintendo didn't react immediately. I'm sure that Microsoft will confirm next week that they're not abandoning the console market, but I don't expect specific announcements for the next generation such as the next-gen console or the rumoured handheld.
If the leaked slides are real, they should reveal the Series X All-Digital Edition (or whatever its name) and the new controller, even if they had not planned to do it now. Since they have been designed already, it makes sense to move the announcement forwards. This is assuming that those slides are real, as they seem.
Will the Xbox console become the Lumia of Microsoft Gaming though..
@Jaxx420 I agree. I dislike when Nintendo doesn't confirm or deny 99% of the rumours, but I got used to it. They even admitted delaying announcements to sell current stock, like they did during all the Nintendo DS revisions. Nowadays, the drama is always more extreme, to the point that some users have said that they have stopped posting because of the ABK drama and this new drama (post from a well-known user on PX, yesterday). However, it's obvious that Xbox attracts much more negativity on the internet. Just today, another poster wrote: "I have the three consoles, love to play them all, but I'm not blind with all the different treatment they receive from the media."
Sony's case is special. After their PC, mobile and online games in general plans, they have been quiet and the sparse first-party output of 2023 and 2024 has triggered some rumours, although I don't see much negativity about it. Is it because people only give importance to the fact that they sell more consoles than Microsoft?
@Banjo- 100% I think the only way they can stem this is by announcing new hardware (that's already been leaked anyway) versus just saying things. This week has given me pause and I'm starting to consider moving my multi-plat purchases to PS5 going forward and just keeping Game Pass with Xbox. I think this coupled with the recent Take-Two leak/announcement (whatever) that PS5 has twice as many consoles out in the wild really does make one start to wonder about 3rd party releases.
@Secryt Yes I expect exactly that, but as long as there is PC I wouldn't worry about Xbox, third-party games included, because the PC market trounced consoles in gaming revenue in 2023, but PC and Xbox share Windows OS, Direct X, development kits and engines, making ports a no-brainer. PS5 depends on its hardware success to attract third parties because PS5 is a closed different ecosystem (even Sony's PC ports are rough), but Xbox is basically a PC not just in hardware like PS5, but in software terms.
@CaptainCluck No. Remember, the console is a part of the machine, not the entirety of it. Microsoft is smart not to put all their eggs in one basket because they would hit a fairly low ceiling if they did. People do need to understand that it isn't 1995 anymore and the gaming business has evolved beyond a plastic box, which is a good thing and Microsoft is well aware of the benefits down the road. The console will always be there for those who feel tied to it. Think of it as something of a security blanket for those afraid to depart from it.
I'm thinking in a couple years we'll have a handheld to satisfy the Switch/Steamdeck crowd, a console for the living room experience people, and a light piece of hardware similar to a Roku/Fire stick for those who want to get into Game Pass affordability (sub $129). Lots of options available is how I see the future.
Then you'll have those, much like me, who access Xbox via their gaming PC and mobile device. Variety is the spice of life and Microsoft is one hell of a chef.
CaptainCluck wrote:
I admit that some of the trolling is simply hilarious: opens the door, compares Lumia with Xbox and leaves...
@Banjo- There's a big difference - Nintendo and Sony can afford to ignore rumours as they're by far the market leaders and are known for ruthlessly promoting their systems and ensuring success.
Xbox ever since the One launch steps on rake after rake, often soon after doing something that seems to be moving the needle - Bethesda acquisition for example then having a whole year with no big games, or buying ABK then spending so long being meek due to the competition investigations that there's barely any marketing to compete with the wall-to-wall Sony ads...
(You can tell the never-ending PlayStation adverts on TV, YouTube, gaming media and even my smart TV for the last few years are starting to grate lol - by comparison I've seen so few Xbox ones)
@Banjo- "PlAYSTatiOn is nuMBah OnE and XbOx is gUNna DiE" isn't worth the Cheetos on the fingertips of the neckbeards who write that crap. If one is to feed the trolls they must do so using words they don't understand. Like "business" and "education".
@Widey85 What whole year was that with no big games on Xbox?
Sony and Nintendo can afford to ignore their customers that are affected by the rumours, but what it has to do with us, users, expecting different things from each? That is my question. Your point is made from their perspective as companies, not from a consumer's point of view.
Yes, Microsoft was very quiet during the ABK process, Phil only revealed their plans to the judge and he did well because the acquisition went through even after Jim Ryan's worldwide tour against it.
I have seen more marketing since the acquisition was completed, but I expect more noise about Call of Duty once all the deals that Sony paid for have expired, Game Pass inclusion and all.
@GamingSince84 🤣 All right. Good point.
I think this is all further evidence people jumped the gun with very little evidence. Let's all see what happens next week. The sky is definitely not falling over at Team Green.
@Banjo- 2022 - the only first party new game all year was Pentiment (and I say that as someone who loved that game).
What I mean is that "winners" while customers might have expectations, have a level of trust from that - while those who aren't doing so well are unfortunately held to a higher standard as the people who've invested in their ecosystem hope they've got a plan, for example to improve third-party support which is always worst for the last-place console.
@Banjo-
Thank god for that.
Always want an Xbox console.
The more I think about this the less I care
Honestly, I don't even think Starfield or Indiana Jones is going to PlayStation, I think it's gonna be sea of thieves, hi-fi rush, blade (probably got something to do with Disney owning the rights and they have a say) and all future live service games and smaller games.
If Sony were smart they would have put helldiver's 2 onto gamepass and got more people to play it and buy more battle passes and what not. See this is the thing, the way games make a profit now isn't like it was in the 90's early 2000's, we know they make most of the profits from DLC, skins, extra weapons, and all that stuff so you cant expect these companies to not want to bring these games to more people, it wont be long before sony start doing the same or at the very least start thinking about it, I still remember hearing that PlayStation games would never be on PC.
@FarmDog08 You're absolutely right. Microsoft knows the value of variety and I'm thinking, per a comment I made here the other day, that a lot of people are going to be surprised by Microsoft's address next week, and in a good way.
New and exciting hardware? New business plan as it pertains to software? More ways to access our games? So many things to possibly look forward to!
@GamingSince84 exactly. And even if it's not so great news, it's a video game company. Not exactly the end of all humanity here.
@Kaloudz It's the nature of the unknown, if we're given an indicator of good news we go wild with the possibilities (new showcase being announced for example), if it's got no indicator / a negative one ("business update" doesn't help that!) then the fear sets in.
Just like if your boss says "I want to speak to you this afternoon, it's good news" you dream of promotions and bonuses of silly amounts and are left a little disappointed by reality, but if they say "I want to speak to you this afternoon" your mind goes into overdrive of being fired, in trouble etc.
So are we going to ignore that Phil Spencer reportedly informed employees that there are no plans to abandon consoles and that the person spreading most rumours has backpedalled? Nah, we keep riding our bicycles into the abyss! 🤣
They are lucky and so are we 😆
If Nintendo and Microsoft had to respond to silly and stupid rumours they would have to make press statements every other day which would be ridiculous.
@Banjo- One forum poster who's known to dislike Xbox has changed his mind - that does not change the story.
He was not XboxEra's source and he wasn't the Verge's source, and both are respected publications who claim to have seen evidence that Starfield and Indiana Jones respectively were under consideration.
They didn't say confirmed though, agreed that's the community speculation running wild - not helped by the fact if it was just small games and GaaS you'd have hoped Xbox would have quashed it by now
@Kaloudz
I’m hoping this is totally true.
If so I will be so so happy to be proven wrong with my no Xbox console next generation theory.
And proudly say to you, you were correct.
@Kaloudz Yep I'm just really hoping they don't wait till their usual Wednesday or Thursday slots to do their thing.
The rumours go back and forth so much it's clear that outside of a guaranteed port (HiFi Rush due to the data mine) and 3 others being considered (but potentially not seriously) as I trust the three publications that mentioned them, no one has a clue what's going on.
And beyond those initial leaks last weekend, Xbox is clearly in bunker mode either deciding, fighting or honing the message - and few leaks are likely escaping, if any at all.
So we've no real idea if those games are now in serious contention for porting, if all are, if they've new hardware they might move up, if they've some amazing new plans for example to help third-party ports or a new handheld or whatever.
It's frustrating as if you regularly consume gaming media you see every possible bit of news, but have to look at the source to see if there's any truth - while waiting for the real show to begin
@OldGamer999 "And proudly say to you, you were correct."
Don't forget to tag me as well 😁.
@Banjo-
How could I ever forget.
And you of course 😊
@Kaloudz
Looking forward to the event and maybe they might say we are also working on next generation Xbox. Would be good as a confidence booster in the brand.
Yeah, them not making consoles wasn't most peoples' concern - it's that Xbox-exclusives becoming just timed-exclusives would make owning an Xbox irrelevant, and long term potentially end it. You think people would buy Nintendo's weak hardware if they announced all their exclusives will come to everything else after 6-12 months? No, most people are gonna wait a year, and pay for the versions with all the DLC, bug patches, & other stuff they added post-launch.
@Kaloudz
I’m all digital already, but fully downloaded digital with games, music and movies.
Steaming only digital games I think is decades away. I’m in Greater London with 6mb/sec it’s a joke.
We have to remember in the UK the government say we are rolling this and that out infrastructure wise and it’s takes them decades to do it, if they ever do it at all.
At my company we want a solar power farm on one of our sites, we can’t have it now as the national grid infrastructure won’t be ready in the area until at least 2030. UK is a bit of joke with these things.
@shoeses With an attach ratio of up to 50% for games like Mario Kart 8 Deluxe (60.58m sold, also consider that some people have several Switch and one copy of the game), Nintendo Switch is a very bad example and not representative of the software sales and attach ratio of system exclusives on Xbox and PS. Besides, the Nintendo hardware since Wii has been designed to play Nintendo's games with motion controls and with less powerful chips, there is little incentive to play anything else on it, the opposite of Xbox and PS that are able to play top-tier PC games decently. Most of the buyers don't choose PS or Xbox because of the exclusive games that they can't find elsewhere. That only works for Nintendo at the moment.
@Banjo- "the Nintendo hardware since Wii has been designed to play Nintendo's games with motion controls". This right here invalidates any point you attempted to make, because it's factually wrong. The Wii is literally the only Nintendo console you can't use a normal controller with the majority of games. With the Wii U most games didn't need the Wii U pad, and for Switch very few games use the Joycons in weird ways. People wouldn't buy Pro Controllers if they couldn't be used with the majority of their games.
@shoeses What I said is correct. Wii, Wii U and Switch all have motion controls. Do you remember Nintendo Land and 1-2-Switch? Recent Nintendo consoles have been designed to play Nintendo games, not third-party games like the other two. I didn't just mention the motion controls but the lack of power. Of course, you can use a traditional controller playing many of its games, I have all Nintendo consoles but Virtual Boy, so I know that.
Wii was Nintendo's first console to exit the power race and the first one to have motion controls, that's why I said "since Wii". Since Wii, Nintendo's systems are designed for Nintendo games, with motion controls and less powerful chips. Did I explain it better this time?
What about your point, because you focused on the motion controls bit, I don't know why. Is there any PS5 or Series S|X first-party game that is a system seller, selling like Nintendo's hits on Switch? I ask because you are suggesting that Xbox needs exclusives that are not available elsewhere as much as a Switch.
@Banjo- Well considering I explained why in the same short Comment and you don't understand, there's clearly no point to continue conversating with you. Have a nice day.
@shoeses All right, I'm "factually wrong" and "I don't understand". Have a nice day, you too.
Just one little thing, I just noticed that you cut my sentence, the full being:
"the Nintendo hardware since Wii has been designed to play Nintendo's games with motion controls and with less powerful chips"
This is funny. It's not optional. If they release Xbox games on other platforms, then Xbox exits the hardware market, whether Microsoft wants to or not. Nobody will buy an Xbox if you can play the same games and more on PlayStation. What Microsoft needs to realise is that the only thing that matters is games. Forget about all this "strategy", "ecosystem" stuff and just make great games. I'm waiting with my Series X for when they decide to make their first great game.
@Kaloudz
I did see that and supposedly in my area as well. I will believe it when I get it 😂
@BacklogBrad I'd say it had more to do with xbox refusing to comment to be fair
@Kaloudz most parts of America are on dial up speeds 😂with caps on everything.
@Shushibda There would be no need to comment if the thin rumors weren't presented as facts and everybody went straight to the death of xbox.
It's hard to prepare for an employee going rogue but you can't always just deny it if it is something that is seriously being considered. Whatever they are saying next week is serious enough for a future of xbox announcement but speculating that the brand is dead is obviously incorrect.
Xbox next console will be named the ‘Generic Box’.
@themightyant I believe John Linneman did a little bit of a dive into SEGA and why it got itself in dire straights.
It was actually SEGA of America that was recklessly spending money that really hurt things for the company.
@Kaloudz Add that to the list of policies the government either don't meet, delay, or outright scrap.
You watch, there'll be a "Oh the infrastructure isn't quite there yet" excuse and keep being pushed back.
Microsoft is valued at $3 trillion. It’s a company with nearly 7.5 billion shares, with majority holders being Vanguard, BlackRock and State Street Corp. These are investment companies. They are not gamers.
Up until recently, Microsoft’s largest acquisition in its history was a little over $21 billion. It was a massive failure. (Nokia says hi!)
We’ll see what comes from Microsoft’s announcement about the future vision for Xbox. I assure you the investment firms have had their say.
@GamingFan4Lyf it depends who you ask - there was internal conflict between Sega of Japan and America at the time - but that’s a very one sided view of it imo. It’s far more complex than that. ONE very simple fact is from the Game Gear onwards Sega didn’t have a successful hardware release for over a decade. Mega CD, Pico (the console aimed at young kids), Nomad (portable Megadrive/Genesis), 32X, Saturn and Dreamcast ALL failed to one degree or another. 6 consecutive hardware failures. They lost a lot of money over that time period. I’d say THAT was the root of their problems more than SoA overspending trying to turn round brand perception. The overspending didn’t help, and was no doubt a problem, maybe even the straw that broke the camels back, but never the main cause.
This doesn't surprise me but it is still good to hear.
@FatGuyInLilCoat Agreed. Exclusives are the sole reason I buy a console. It Microsoft ends up bring all their games to say, Playstation, even at a year or two delay, I have no reason to buy more Microsoft hardware.
Hell, at this point I may dip out anyway since they're putting their games on Steam now.
Maybe I’m in the minority, but as an Xbox owner I don’t really care if Xbox games end up on other consoles. Sure, it would be nice if exclusives from other consoles ended up on Xbox but that’s never going to happen with Nintendo anyway and the handful of Sony exclusives are not going to keep me up at night.
Moving a game onto another system means more units sold, simple as that. They need the money, especially with the ridiculous budget of some games these days. It’s happened before; Resident Evil 4 was a GameCube exclusive, but the install base was so small that it went to PS2 very quickly. The remake of Resident Evil 1 was hurt and didn’t turn a profit exactly because it was stuck on a (very good) system that just wasn’t in enough households.
If games where on ps, maybe it will make xbox take a chance making some of the games that we've wanted for years , surely thats a good thing.
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